EFFECT OF REWARD AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE THROUGH WORK SATISFACTION AS A MEDIATION (STUDY ON EMPLOYEES OF PT. INTERNATIONAL CHEMICAL INDUSTRY)

Rina Apriyanti,Ari Saptono,I Ketut R Sudiarditha

doi:10.38035/dijefa.v1i6.718

Rina Apriyanti, Ari Saptono + Show 1 more

Open Access

https://doi.org/10.38035/dijefa.v1i6.718

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Abstract

As a provider of battery products under the ABC brand name, PT International Chemical Industry always strives to improve the performance of its employees in order to maintain existing market share. However, the problem faced in this study is about the quality of employee performance during the 2015-2019 period, during which the employee's performance did not comply with the standards set by the company and inconsistencies occurred which resulted in not achieving the company's production targets, even though the company had completed policies regarding company performance standards. This study aims to examine and analyze the effect of reward, and work environment, on employee performance through job satisfaction. This research is quantitative in nature using multivariate analysis with SEM LISREL tools. Withdrawal of population using census techniques, the sample of respondents is permanent employees totaling 420. The results of this study indicate a positive and significant effect of reward on job satisfaction, a positive and significant effect of the work environment on job satisfaction, a positive and significant effect of reward on job satisfaction. Employee job satisfaction, there is a positive and significant influence of the work environment on employee performance, there is a positive and significant influence of job satisfaction variables on employee performance.

Highlights

IntroductionInternational Chemical Industri, which includes seven departments with middle to lower management levels
Hypothesis testing is done by looking at the standardized total effects value on the structural equation model
It can be seen the results of the hypothesis test as follows: 1. Coefficient of direct effect of reward (X1) on employee job satisfaction (Z) γ1 positive of 0.26, t-value of 9.14

Summary

Introduction

International Chemical Industri, which includes seven departments with middle to lower management levels. Available Online: https://dinastipub.org/DIJEFA of key performance indicators so that it became an obstacle for the company to meet market demand. This can be seen from the output of the production process that uses machines and human resources from year to year, never reaching the target set by the company. Even though the company has tried to update production equipment and conduct training for every production employee who is responsible for achieving production output. Shows a comparison of the number of production employees with existing machine capacities as well as information on key performance indicators that still do not meet PT.

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